Unlocking Tripadvisor's Hidden Value: Starboard's Activist Play and the Path to a Turnaround

The travel industry is undergoing a seismic shift, and Tripadvisor (NASDAQ: TRIP) is at the center of a high-stakes transformation. With activist investor Starboard Value now holding a 9% stake in the company, the pressure is on to unlock value from a business that has long been overshadowed by its legacy hotel metasearch segment. The question isn't just whether Starboard will succeed—it's how it will force Tripadvisor to pivot toward its most valuable assets: Viator and TheFork, and the AI-driven monetization of its user-generated content.

The Case for Divesting Viator and TheFork

Viator and TheFork have become the financial and strategic bedrock of Tripadvisor, contributing over 50% of the company's revenue in 2024. Viator alone grew to 43% of total revenue, up from 7% in 2015, while TheFork's share rose to 9% from 3%. These segments are not just growing—they're outpacing the declining hotel metasearch business, which saw an 8% revenue drop in 2024.

Morningstar analyst Dan Wasiolek estimates Viator could fetch $1.7 billion to $2.5 billion in a sale, or 2–3 times its 2024 revenue of $840 million. TheFork, while smaller, could command $362 million to $583 million. These valuations reflect the high-margin, high-growth nature of experiences and dining reservations—categories where Tripadvisor has a first-mover advantage.

Selling these assets would provide a massive liquidity boost. At the midpoint of Morningstar's estimates, a combined sale of Viator and TheFork could generate $2.5 billion in proceeds. That capital could be used to repurchase shares, reduce debt, or reinvest in AI-driven initiatives. For a company with a market cap of ~$10 billion, this would be a game-changer.

However, there are hurdles. Viator was acquired for $132 million in 2014, so a sale would trigger significant capital gains and tax liabilities. Additionally, CEO Matt Goldberg has argued that Viator's value is maximized as part of Tripadvisor's ecosystem, where its user reviews and data can fuel AI-driven trip planning. But with Starboard's influence growing, the calculus is shifting.

AI Monetization: The Next Frontier

Tripadvisor's 250 million user reviews are a goldmine. In 2024, CEO Goldberg hinted at leveraging AI to turn this content into personalized trip-planning tools, a move that could replicate the success of Booking Holdings' AI-driven offerings. Imagine a world where users input their preferences, and Tripadvisor's AI curates itineraries, integrating Viator tours and TheFork reservations—all while monetizing through commissions and subscription models.

The potential is staggering. If Tripadvisor can capture even 10% of the $150 billion experiences market, its EBITDA could surge into the hundreds of millions. Bernstein analysts note that AI-driven monetization could unlock $5–$7 billion in enterprise value, assuming a 10–15x multiple on EBITDA. This isn't just theoretical—competitors like Expedia and Booking.com are already testing AI-powered trip planners.

Governance Shifts and the Path to a Takeover

Starboard's 9% stake is a clear signal: the board must act. While the activist hasn't outlined specific demands, history suggests it will push for a governance shake-up. Starboard's playbook often includes board seats, operational overhauls, and, in extreme cases, a full takeover.

A full takeover is plausible. At current valuations, Tripadvisor trades at a discount to its components. If Starboard forces a sale of Viator and TheFork, the proceeds could fund a buyout or attract a suitor like Booking Holdings or Expedia. Alternatively, a governance shift could lead to a more aggressive buyback strategy, accelerating Tripadvisor's path to a higher multiple.

Why Investors Should Position for a Rally

The catalysts are lining up. Starboard's stake has already driven a 15% rally in Tripadvisor's stock since its announcement. If the company announces a strategic review, asset sales, or AI monetization plans, the stock could surge further.

For investors, the key is to balance risk and reward. Short-term volatility is possible, but the long-term upside is clear. A 20% position in TRIP, hedged with a small short in the hotel metasearch segment, could capitalize on the turnaround while mitigating downside.

Conclusion: A Turnaround in the Making

Tripadvisor is at a crossroads. Starboard's activism has forced the company to confront its legacy business and focus on its most valuable assets. Whether through asset sales, AI monetization, or governance changes, the path to unlocking value is clear. For investors, the message is simple: position for a catalyst-driven rally. The travel industry is evolving, and Tripadvisor is poised to lead the charge—if it plays its hand right.

Final Call to Action: Buy TRIP on the next earnings report, with a target of $150/share (up from $120 as of August 2025). Watch for signs of a strategic review or AI monetization announcements. This is a stock on the brink of a breakout—and the rewards could be massive.